My Investment Portfolio (November 2023)
STI remain almost unchanged in November to end at 3072 points, up 0.1% as compared to last month closing. Markets rallied during the early part of the month due to expectation of no further rate hike from Fed. However, recession fears took over later in the month and markets corrected. Volatility also decreased greatly this month as compared to previous one.
I have attended the following physical AGMs/EGMs/briefing this month - Khong Guan.
For my top 30 holdings this month, Amara was one of the main movers after the company received a voluntary unconditional cash offer from a consortium. iFAST also continued its good run from previous month after receiving brokerage upgrades. The REITs in the list also did well, as investors now expect no more rate hike in US for this year and faster pace of rate cuts in 2024. Sembcorp Industries also outperformed, after making more investments into wind assets in China and India. Laggards include The Hour Glass and Delfi. Investors were disappointed after Delfi's 3Q23 business update as growth might moderate going forward. OUE is a new entry into the list for the month.
I have bought the following companies from the market this month - AF Global, Asia Enterprises, Boustead, Bukit Sembawang Estates, Bund Center, Captii, Chemical Industries, City Developments, Credit Bureau Asia, EnGro, Far East Orchard, Frasers Property, Goodland, HL Global, Hongkong Land, Hong Leong Asia, Hong Leong Finance, Hotel Grand Central, Hotel Royal, Hotung, IFS Capital, Indofood Agri, IPC, Isetan, Jardine Matheson, Karin, Kingsmen, KSH, Lion AsiaPac, Low Keng Huat, Lum Chang, Metro, Nam Lee, Pan Hong, Shopper360, SHS, Sing Investment & Finance, Sing Holdings, Singapore Land Group, Singapore Shipping, Singapura Finance, Straits Trading, TIH, UOA, UOL, Wing Tai, Yanlord, Yeo Hiap Seng and YHI. No sale trade was done.
I have participated in the following scrip dividend scheme - Mapletree Logistics Trust.
We are getting into the last month of the year. With many investors going on holidays in December, I do not expect much activities as the year comes to an end. As we reflect and review this year in order to plan ahead for 2024, I take this opportunity to wish all my readers out there a happy holiday season!
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 November 2023)
Top 30 Holdings (Sing$ Denominated shares)2. Hongkong Land
3. Jardine Matheson
5. DFI Retail Group
Top Holdings (HK$ Denominated shares)
Top Holdings (Aust$ Denominated shares)
1. AV Jennings
1. Streettracks STI ETF
3. CapitaLand Integrated Commercial Trust
5. Best World
My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
2. Alpha Professional Holdings Ltd (formerly known as Z-Obee Holdings Ltd)
My Australia Stock Portfolio
1. GPS Alliance Holdings Limited
My Unlisted Company Portfolio
1. Iconic Global Limited
2. Dongshan Group Ltd (formerly known as Greatronic Limited)
3. General Magnetics
4. Fastech Synergy
5. Memory Devices
6. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
7. FM Holdings
8. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
9. FerroChina - Under Liquidation
10. FirstLink Investments
11. NEL Group
12. Jets Technics
13. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
14. Hongwei Technologies Limited (In Provisional Liquidation)
15. FDS Networks Group
16. Aussino Group - In Liquidation - Creditors' voluntary winding up
17. China Oilfield Technology
18. China Milk Products Group - Under Liquidation
19. Pacific Healthcare
20. Fung Choi Media - In Liquidation
21. DMX Technologies - In Liquidation
22. Europtronic Group- In Liquidation
23. China Sun Bio-chem Technology
24. Attilan Group
25. Transcorp
Labels: Portfolio
posted by ghchua at 3:20 AM
11 Comments:
TIH is a company with unrealised potential. It is good for investors with long holding power.
Hi WTK,
The value of TIH is in their private investments and also their stake in OUE. Essentially, you are getting a discount over a discount in OUE's NAV by buying into TIH, since their public investments are marked to market.
Yes. I am in TIH for long term. As with any private investments, you need time for these investments to bear fruit for that eventual exit.
Compared to Sing Inv and HL Finance, Singapura Finance does not seemed too attractive. Any thoughts on S'pura Finance
Hi pukermon,
Singapura Finance was a ok company, but it had underperformed the other two in recent years. However, I think it is trading at a decent valuation and therefore I increased my stake.
I guess sometimes, it depends on which angle you deemed as "attractive". Is it because it is attractive to you based on earnings growth, dividend yield, discount to NAV etc. Different investors have their own opinion.
Hi ghchua
Thanks for your reply.
I am looking at the ROE of the 3 finance companies where Spura is last at 3.24 compared to 6 and 8 from the other 2.
The PE ratio of 13 is also far higher so it’s unlikely that they will be able to increase their dividend s anytime soon
Hi pukermon,
So, you are looking at ROE and concluded that Spura is the least attractive. But if you look at the 3 banks ROE of above 10%, you would have concluded that all the 3 finance companies are not attractive, as compared to the banks.
But what if you are looking at price to book ratio? Spura at 0.45x is the lowest as compared to the other two finance companies. Similarly, the banks are all trading at above book currently, while the finance companies are all trading below book value.
So, what I am trying to say is that different investors has different ways of looking at a stock. For my case, after looking at price to book ratio, I deemed Spura the cheapest among the three. And therefore, a lot of bad news had been factored into the current share price and downside is limited. Correspondingly, if there is good news out there, Spura has the greatest upside potential as it is the cheapest.
Hope that the above clarifies.
Hi ghchua,
Thanks for the clarification on looking at PB ratio.
It was never my intention to compare ROE across industries, only between S'pura Finance, Sing Inv and HL Finance. Besides ROE, I was also looking at Div Yield and PE ratio
Hi Chua,
do you have ap oil in your portfolio? seems like a very classic value trap, the company sitting on huge cash pile but unwilling to distribute yet dont really do anything about it. net cash value ard 18cts but now trading at 12 cts only....what's your view on this company?
Desmond
Hi Desmond,
Yes, I do hoid AP Oil in my portfolio. With respect to the cash level, this question had been asked at previous AGMs. The reply they gave was cash is needed for working capital, capex and possible M&A activities.
The drop in share price is mainly because of poor results in 1H23. Lower market demand for their products and lower selling prices had been cited as the reason. The margin for this business is not really that big, and fluctuation in prices will continue to hit their bottom line as some costs are fixed.
However, with a healthy cash level and higher interest rate, interest income is expected to continue to be high, and hopefully, they can be profitable for the full year in FY23.
I am not looking at recovery in the numbers in the short term, but I think the company should be able to tide through this tough period.
Hi GHChua,
What is your view on Global Inv with several share buy-backs recently and potential interest rate cut in 2024?
And can you share the rationale behind the purchase of KSH which is losing money?
"The net loss was mainly incurred by the Group’s construction arm, arising from increased costs for construction projects."
Thank you in advance.
JTK
Hi JTK,
Global Inv had been buying back shares in order to fulfill their scrip dividend scheme and/or bonus issue. Therefore, it makes sense rather than issue new shares to do it. I think interest rate cut should be positive for them overall, since most of their investments are in bonds and bank Cocos.
I think for KSH, besides their construction segment, the other parts of their business like property development and hotels are still doing ok. It will take sometime for them to ride out challenges like high construction costs. Share price had corrected back to decent levels which I feel might have reflected most of the bad news as the discount from NAV had widened.
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